04/19/1993 COMMUNITY REDEVELOPMENT AGENCY
April 19, 1993
The City Commission, meeting as the Community Redevelopment Agency, met in regular session at City Hall, Monday, April 19, 1993 at 1:10 P.M., with the following members present:
Rita Garvey Chairperson
Richard Fitzgerald Member
Sue Berfield Member
Arthur X. Deegan, II Member
Fred Thomas Member
Phil Henderson Ex-officio member
Lillian Trickel Ex-officio member
Also Present were:
Michael J. Wright Executive Director
Milton A. Galbraith, Jr. Attorney
Cynthia E. Goudeau Secretary
The meeting was called to order at 1:10 p.m.
ITEM II. - Minutes of 10/19/92, 11/30/92 & 2/16/93:
Member Berfield moved to approve the minutes of the October 19, 1992, November 30, 1992 and February 16, 1993 meetings. The motion was duly seconded and carried unanimously.
Member Deegan expressed concern regarding the minutes not being specific as to individuals that are speaking. He stated not having the individuals identified sometimes causes confusion.
He emphasized the minutes are the official record of the meeting.
Member Deegan moved that the minutes of the agency be reported in such a way that the identity of individuals making suggestions, raising questions, and offering comments be identified
in the minutes by name. The motion was duly seconded and carried unanimously.
The secretary requested clarification regarding whether this would include all citizens speaking. It was indicated it would include all individuals making comments at the meetings.
ITEM III. - Brown offer to purchase CETA Property, 1180 Cleveland Street
On March 3, 1993, Betty Brown, co-owner of the Plainsman Gallery located at 1171D Cleveland Street offered a lease purchase proposal for the CRA property located at 1180 Cleveland Street.
The offer would be to pay $285,000 with five year lease payments of
$24,000 each year. The cumulative lease payments of $120,000 would reduce the payment to
$165,000. In addition, repairs in the amount of $62,000 would be credited against the lease payments.
The CRA is unable, under state law, to enter into a lease purchase arrangement and since the City is considering using the Annex building as the administrative center of City government,
the value of the CRA property which is across the street, should be enhanced. Therefore, staff recommends this offer be rejected.
The Executive Director indicated that as this was a bonofide offer, he was obligated to bring it forward to the CRA.
Member Thomas raised a question regarding whether or not a recent appraisal had been obtained. The Executive Director indicated it had not been. The Executive Director further indicated
that this has not been done as he has been wanting to do additional goal setting with the CRA in order to get direction regarding CRA properties.
Member Fitzgerald requested that the issue of this offer be settled and then to discuss additional questions regarding CRA property.
Member Berfield moved to reject Betty Brown's offer to purchase the CETA building located at 1180 Cleveland Street. The motion was duly seconded and carried unanimously.
The Chairperson questioned whether there was further direction regarding this building. Jerry Sternstein, Economic Development Director, indicated that if the Annex is refurbished,
it was his suggestion this property be held and an appraisal be done later, as, it was his belief that the property would increase in value.
Member Deegan questioned how long the property had been vacant. Mr. Sternstein indicated it had been vacant for approximately 2 and 1/2 months. Member Deegan questioned whether or
not any efforts have been made to lease the building. The Executive Director indicated that they were not actively soliciting leases. Mr. Sternstein explained that the S.T.E.P.P.S.
organization, which had leased the building, was still paying the City lease payments that were in arrears although they have vacated the building. He further indicated that if we lease
the building, there are approximately $60,000 worth of repairs that need to be done.
Member Thomas suggested that a lessee could do the repairs. The Chairperson expressed concern that if a lessee does the repairs, they will expect a longer lease.
Member Thomas moved that the Executive Director of the CRA move forward with leasing the CETA building. The motion was duly seconded and carried unanimously.
ITEM IV. - Site Plan for Station Square Park Parking Lot (Kravas Property)
William C. Baker, Public Works Director for the City of Clearwater, presented the proposed site plan for the Kravas lot indicating that it will have greenery and landscaping and 79
parking spaces.
The Executive Director indicated that City Commission approval will not be required for this site plan but the CRA, as owners of the property, need to approve it.
Member Thomas raised a question regarding why there was only one-way ingress into the parking lot and Mr. Baker indicated this was all DOT would permit.
Member Thomas questioned whether or not the CRA received revenue from the City's use of this property as a parking lot. The Executive Director indicated there was a contract between
the CRA and the City and there was a split of the revenues. Member Thomas suggested this agreement be looked at to see if greater revenues could come to the CRA. It was suggested this
be done at a future agenda.
Mr. Baker indicated an award of contract for construction of the parking lot would be coming forward shortly.
The Chairperson raised a question regarding the location of the handicapped spaces and it was reported that the City's ADA committee had suggested the location.
Member Thomas moved to accept and approve the site plan and to authorize the City's engineering division to be its agent in soliciting bids. The motion was duly seconded and carried
unanimously.
ITEM V. - Res. #93-1 - Abatement of taxes on Kravas Property
The City Attorney presented Resolution #93-1 and read it by title only. Member Fitzgerald moved to pass and adopt Resolution #93-1 and authorize the appropriate officials to execute
same. The motion was duly seconded and upon roll call, the vote was:
"Ayes": Fitzgerald, Berfield, Deegan, Thomas and Garvey.
"Nays": None.
ITEM VI. - Joint Meeting with the Downtown Development Board (DDB) scheduled for 4/26/93
The Executive Director questioned whether or not the CRA still wished to go forward with this joint meeting as the City Commission had indicated its desire to dissolve the DDB. Consensus
was to have the joint meeting on April 26, 1993.
ITEM VII. - Executive Director Reports
A. Bilgore Property
Ads offering the Bilgore Property were run in various publications in the month of February. Jerry Sternstein, Economic Development Director, indicated the ads did not garner much
interest in the property although he did talk to a few people. He indicated the CRA had purchased the property for $690,000.
Member Berfield questioned whether or not the MAS Properties people had been contacted as they were interested in developing apartments downtown which had been pursued for the Bilgore
property at one time. It was indicated they had not been contacted regarding the Bilgore property.
Member Thomas suggested abatement of taxes as a way of attracting people to the CRA district. He felt this abatement would be based on the desirability of the client and the development.
He questioned the Executive Director regarding the desirability of improving the Police Department facilities and whether or not Countryside was still be considered for expansion.
The Executive Director responded that money has been set aside for the expansion of the training facility at the Countryside substation however, if he had his "druthers", he would relocate
that facility more centrally. His real preference would be to abandon the current Police Department building and to build on the Annex site.
Member Thomas felt that abandoning the Police Department and combining this with the Bilgore property would give a developer property with which to work.
Member Deegan expressed concern regarding direction given last fall to try and develop the Bilgore Property as a mixed use facility. He did not feel that there was a need to change
that direction and was disappointed that only ads had run.
Phil Henderson, ex-officio member, stated he would like to see a presentation regarding all CRA owned properties in order to come up with a total plan.
The Executive Director indicated he had delayed goal setting due to the change in membership of the CRA, City Commission and DDB.
Members Berfield and Thomas agreed there was a need to set the direction of the CRA first.
The Chairperson indicated this was just an update regarding the Bilgore site.
B. Annual report and Independent Financial Audit
The Executive Director reported that he, as City Manager, is going to be recommending replacing Coopers & Lybrand as the City's external auditors as they have failed to perform according
to the contract. It was indicated the CRA's financial audit is included in the City's overall financial audit.
Member Deegan indicated his concerns are what are the rules for the trust fund. He also expressed concerns regarding Margaret Simmon's memorandum of April 13th responding to questions
regarding the annual report and audit indicating it would appear that we are following some state statutes in one regard and others in another. The Executive Director indicated he would
research this.
Member Deegan again emphasized that he wanted to know what the CRA's responsibilities are. The Executive Director indicated the state statute regarding the CRA has
been amended several times and it was indicated the entire statute as it now exists will be sent to the CRA.
Member Deegan indicated the City Attorney needed to keep the members more up to date on changes in state law that affect them.
The City Attorney indicated he would respond regarding Ms. Simmon's memo.
C. Retail Recruitment
Jerry Sternstein, Economic Development Director, indicated he has instituted what he is calling a mini-recruitment effort. He stated he is using a program called Retail Tract that
indicates companies interested in doing something in a downtown and in Florida. He has sent letters to everyone who has indicated this type of interest and he is beginning follow-up
telephone calls. He further reported he has set up a meeting with local real estate agents to discuss the program. He stated he has been gratified with the response.
The Chairperson raised a question regarding DDB action regarding a contract with Ms. Hackett. Ex-officio member Henderson indicated the DDB has hired Ms. Hackett to do a study regarding
what people want downtown.
Mr. Sternstein indicated he felt this was a viable mini-program and suggested that if there were particular pieces of property the CRA wished to market, he could include that in his
packet of information. He also stated that once incentives are determined, those can be included in the packet.
The Executive Director indicated this was a report to the CRA. He stated things will change as Mr. Sternstein begins to deal with the real estate community and dividing the leads among
them.
Member Thomas suggested all leads be turned over to all property owners with property for rent in the downtown area, simultaneously.
The Executive Director also indicated Mr. Sternstein was thoroughly investigating a discount mall on the Annex site, however, when the City Commission made the decision to have City
Hall at the Annex, that effort was halted. Mr. Sternstein indicated there is a difference between discount and outlet malls and he will still be doing a report.
ITEM VIII. - Discussion Items
A. Member Thomas' list
Member Thomas has submitted a list of topics to the Commission including change in the rules of conduct; establishing a definitive plan for the CRA to follow; the agency consider establishing
its own Executive Director paid for by, and reporting to, the CRA; expanding the CRA to include resort and commercial districts on Clearwater Beach and having ex-officio members on the
CRA from the downtown and the beach.
Member Thomas indicated several of his suggestions overlap Member Deegan's. He distributed a new set of rules of procedure for the CRA to consider. He stated the significant changes
are that the board elect a Chairperson on an annual basis and the agency hire its own Executive Director. He stated in regard to the CRA having a full-time Executive Director, that
this would sunset payment to the General Fund for the Economic Development Director. He stated he has added Robert's Rules of Order to the procedures and indicated that in his suggested
rules, the CRA would meet prior to every City Commission meeting and worksession. He felt that key people from the DDB should be brought into the CRA. He indicated he was not expecting
action on the rules today but rather to distribute them and give the remaining members a chance to read them.
B. Member Deegan's Memo
Member Deegan indicated he was going to ask for action regarding the items in his memorandum as the agency members have had it for at least a week and time to consider the proposals.
He stated in his memorandum he makes points as to how he feels the CRA has not governed in the way it should have. Member Deegan also indicated he felt the CRA can use its monies for
marketing.
Member Berfield said she agreed with Member Deegan and stated there were some of the same suggestions in Member Thomas' proposal.
Member Deegan questioned whether or not the other members felt the CRA was doing a good job and the majority agreed they were not.
Member Fitzgerald felt there was alot of merit to evaluating what has been said. He stated the CRA has not had a specific plan and has never agreed on how to approach the downtown
problem. He stated the CRA needs a firm grasp of how it views the downtown. He felt mixed signals had been given to all concerned.
The Chairperson agreed now is the time for a different direction and indicated that in the first few years of the CRA, there was little money to worry about.
Member Deegan moved to return to the original intent by having regular meetings of the CRA prior to each meeting of the City Commission for the purpose of more closely monitoring what
follows. The motion was duly seconded.
Member Fitzgerald and Chairperson Garvey questioned meeting prior to each Commission meeting. Chairperson Garvey also expressed concern regarding how to schedule the meetings as the
Commission meetings begin at 6:00 p.m.
Member Deegan amended his motion to state that there would be one hour meetings prior to the Commission meeting with those hour meetings scheduled to start at 4:30 p.m. The seconder
accepted the amendment.
Upon the vote being taken on the amended motion, it carried unanimously.
Member Deegan moved to hire a full-time CRA Executive Director reporting directly to the Trustees of the CRA. The motion was duly seconded.
Member Fitzgerald questioned how to arrive at the salary for the Executive Director and Member Deegan indicated this would be during the normal hiring process and decided at a CRA meeting.
Upon the vote being taken, the motion carried unanimously.
The Executive Director suggested an orderly transition period with the new Executive Director starting at the beginning of the next fiscal year, October 1, 1993.
Member Thomas suggested that on a trial basis, Mr. Sternstein serve as Executive Director. Member Deegan indicated he did not wish to wait until October 1 and requested this be discussed
further at the May 6, 1993 CRA meeting. It was stated that until a full-time Executive Director is hired, Mr. Wright would continue as the part-time Executive Director.
Member Deegan moved to cancel funding for the Office of Economic Development to provide the funds needed once a full-time Executive Director is hired. The motion was duly seconded
and carried unanimously.
The Executive Director requested direction regarding the job qualifications. Direction was for him to provide a draft of the job description and qualifications and the CRA would amend
them as they deemed appropriate.
Member Deegan moved to redefine the role of the DDB to act as a business development committee of the CRA while maintaining its independent status.
Member Deegan elaborated on his motion stating that while they have been told the board is independent, the DDB is now requesting direction and it was felt that them acting as a business
development committee would give them a stronger role to fulfill. Member Thomas indicated that whether or not the DDB is sunsetted, they could continue as the business development committee.
The motion was duly seconded.
Member Thomas questioned ex-officio member Henderson regarding whether or not a survey had been completed. Mr. Henderson indicated this would need to be discussed with the DDB and
the joint meeting on April 26 is taking the place of the regular DDB meeting.
Chairperson Garvey indicated that she felt decisions regarding this should wait until DDB input.
Member Deegan withdrew his motion.
Ex-officio member Henderson indicated he would make a copy of the proposal from Judy Hackett regarding the study she is to do.
Member Deegan moved to request the DDB to hire a marketing director to be responsible for retention and recruitment and to take day to day direction from the Executive Director of the
CRA. The motion was duly seconded.
Chairperson Garvey requested this also wait until the DDB can provide input. Ex-officio member Henderson indicated this could be discussed at the joint meeting.
Member Deegan withdrew his motion and requested this be agendaed for April 26, 1993.
Chairperson Garvey questioned what the definition of a business development board to be and Member Deegan indicated he would provide that definition.
Member Deegan moved to continue accounting support for the CRA from City staff but reimburse the General Fund for this activity. The motion was duly seconded.
The Executive Director questioned whether or not this should be expanded to include all other City staff that provides support to the CRA.
Member Deegan amended his motion to "accounting and other staff support except the City Manager and City Attorney". The seconder accepted the motion.
The Executive Director questioned whether or not the General Fund should be paid for the time for designing the site plan for the Kravas lot. It was indicated these reimbursements
should be for future efforts. It was also indicated that as future projects come up, it will be decided on a case by case basis whether or not to reimburse the General Fund.
Upon the vote being taken, the amended motion carried unanimously.
Member Deegan moved to investigate the use of a small business incubator to provide consulting services to both present and prospective businesses. The motion was duly seconded.
The Chairperson suggested this was something the new Executive Director should look at. Member Deegan indicated he felt Mr. Sternstein could immediately investigate this issue.
Member Thomas indicated he will be bringing forward to the City Commission for consideration, a methodology for approaching new business in Clearwater that would go further than the
incubator.
The Executive Director requested clarification regarding what type of incubator as he knows of three: research and development, retail and service. It was the consensus that the latter
two, including service and manufacturing, should be pursued.
Upon the vote being taken, the motion carried unanimously.
Member Deegan moved to make a formal request to the State to return Cleveland Street to the City and begin planning to redesign Cleveland Street to permit on-street parking.
Member Deegan stated he realized the State has indicated action on this request would have to wait until after the completion of the one-way pair study currently being done in connection
with the Drew Street widening project but he did not feel it should delay the request.
Chairperson Garvey expressed opposition stating this has been discussed before and she has concerns regarding the cost and impact of this. She stated it is not a simple thing and that
parking on Cleveland Street would not save downtown.
Member Fitzgerald felt that information from DOT should be obtained before action being taken. He stated he also did not feel that on-street parking would save downtown.
Member Thomas questioned whether or not the CRA could request this and whether or not the Commission would have to take action.
The Executive Director indicated the CRA does not own streets but the City does and that the City Commission would have to also make the request. Direction was provided to agenda this
for the next City Commission meeting.
Member Deegan stated he did not feel any one thing would save downtown but each thing contributes overall.
The Executive Director requested a definition regarding what span of road was to be considered.
Member Deegan amended his motion to be specific to remove the State Road 60 designation from Cleveland/Gulf-to-Bay, from Highland Avenue to the bay.
Upon the vote being taken upon the amended motion, Members Berfield, Deegan and Thomas voted "Aye", Member Fitzgerald and Chairperson Garvey voted "Nay". Motion carried.
Member Deegan moved to create a public/private partnership. The motion was duly seconded.
Member Deegan gave examples of the types of things that this public/private partnership could do to include: inviting a bank consortium to set up a revolving fund to provide working
captial for small businesses, applying for a planning grant from the State, enacting ordinances to permit incentives and to request utilities to provide incentives within their power.
Member Thomas indicated that state laws govern community development corporations which are extremely useful tools but could take some time to develop.
Member Berfield questioned whether or not this was similar to an organization in Columbus,
Ohio. The Executive Director indicated it would depend on how the partnership is established.
The applicability of the Sunshine Law will also depend on whether tax monies are spent.
Chairperson Garvey indicated there would be some people who have a problem with their names being public prior to them making definite decisions about relocation.
Upon the vote being taken, the motion carried unanimously.
Member Thomas moved to direct that the CRA be expanded to include the commercial and resort districts of Clearwater Beach.
Chairperson Garvey suggested this be looked into rather than taking definitive action at this time.
Member Thomas indicated he felt that redevelopment in Clearwater would not truly occur unless the downtown and the beach are developed as a package.
Member Deegan expressed opposition to the expansion but said he is interested in doing something on the beach. He stated the Clearwater Beach Blue Ribbon Task Force had suggested that
Planning look into a special development district for this area.
Member Thomas felt that the CRA tools would be beneficial on the beach.
The Executive Director indicated there are two concepts. One, the CRA which is a tax increment financing district or an overlay taxing district. He stated it took years for the CRA
to build up funds through this tax increment process and that it has a limited life. He stated a separate CRA on the beach would provide a longer life for that particular district.
Member Deegan requested that research be done and that alternatives be provided.
Member Thomas withdrew his motion.
Member Thomas moved to direct staff to come back with a plan to accomplish what is proposed regarding redevelopment for Clearwater Beach. He clarified this would include resort and
commercial areas, not residential.
The Executive Director pointed out that resort/commercial districts are also considered to be residential in some regards and it was indicated that those districts would be included.
The motion was duly seconded.
The Executive Director indicated that the work priorities of the Planning Division would have to looked at and reprioritized.
Upon the vote being taken, the motion carried unanimously.
ITEM IX. - Adjournment:
The meeting adjourned at 3:57 P.M.